Put The Psychology of Wealth on Your Reading List Immediately

& ENTER TO WIN A COPY OF THE PSYCHOLOGY OF WEALTH HERE. Contest ends May 15.

“Action is a great restorer and builder of confidence. Inaction is not only the result, but the cause, of fear. Perhaps the action you take will be successful; perhaps different action or adjustments will have to follow. But any action is better than no action at all.” by Norman Vincent Peale as quoted in the Psychology of Wealth

At the risk of sounding self aggrandizing, when I was contacted by the marketing department at McGraw Hill Publishing to review this book, I assumed it would be a boring rehash of everything I already knew. Having read a multitude of finance, personal finance, and psychology texts, I thought I knew pretty much everything on the subject.

Charles Richards, PhD, author of The Psychology of Wealth

I WAS WRONG

Quick Recap of The Psychology of Wealth

Based on research, anecdotes, and and personal experience, Dr. Richards accomplished a very difficult task. He took the breadth of wealth, psychology, mindfulness,  and money management fields and integrated them into an inspiring and informative book. Richards starts out with a definition of wealth, and it’s integration with self esteem.

Wealth has less to do with money and more to do with personal responsibility, risk taking, achievement, and determination.

Don’t let me suggest that this book has a pollyannaish approach. On the contrary, the role of debt and wealth is front and center, yet there is so much more.

The central concept of The Psychology of Wealth is that wealth and poverty are both states of mind. This singular statement reifies both the simplicity and complexity coexisting in this book.

How Your Life Will Improve from Reading The Psychology of Wealth

If you really consume this book and take the messages to heart, here are some outcomes you can expect;

An awareness of how your family operating system programs your beliefs, attitudes, skills, anxieties and expectations and contributes to your life satisfaction.

How to get beyond the awareness of your background, and use it to overcome any negative messages about wealth, success, and prosperity. Get inspired by real life stories of people from difficult backgrounds who transcended lack of financial wealth and prospered.

For example, Leticia manifested a sense of abundance which led to great personal success, in spite of an impoverished upbringing. Her family had little money, yet her father ingrained a sense of value by focusing not on Leticia’s appearance but upon her accomplishments and intelligence. He helped her to understand that the tiny size of their family home did not define her.

Learn the true meaning of money. Currency, another word for money, represents transferring cash for services or work. In and of itself, money is without value. So many folks focus on the magic “number” to signify their financial status. It is a fact that money is only a means of barter to help you buy goods and services.

According to Dr. Richards, “Price is what you pay. Value is what you get.”

Giving back is another familiar concept in the wealth literature, but Richards take on this subject can be summarized by one quote,

“The psychology of wealth requires trusting that, no matter what happens, we will have enough.”

The story of Donald Trump stopping his limousine on the way to a speaking engagement to give advice and encouragement to a bevy of young people clamoring for his attention is a perfect example of the types of stories Richard’s interweaves to enliven his prose.

Chapter 7, “Living Consciously” discusses the popular living in the moment concept. Have you considered this concept in relation to debt? The book links conscious living to conscious debt and offers a rich rubric for the debt decision-making process. Carry the living consciously concept into every corner of your life and you will master the psychology of wealth.

The book is so rich with anecdotes, advice, and action steps, I want to savor every page. It’s not often that a money book is so satisfying.

It’s difficult to find a criticism with the book, but in order to be evenhanded, following is my one complaint; the seamless integration of money and life fulfillment concepts makes me sorry that I didn’t write the book myself .

Enter to WIN a free copy of the Psychology of Wealth, by signing up for my Wealth Tips Newsletter. Let me know that you signed up for the newsletter in the comments section please.

You’ll even get a free bonus eBook of my award winning 20 Minute Guide to Investing, just for signing up. The winner will be chosen on May 15 and will be selected at random.

Don’t believe my review? Read what other personal finance bloggers are saying about The Psychology of Wealth

• Financial Samurai
• Retireby40
• Enemy of Debt
• Balance Junkie
• CNBC review by Dr. Richards

Stop by next time and read The Secrets of Wealth an inspiring 2 part interview with the author, Dr. Charles Richards.

How does your mind impact your feelings of wealth or lack thereof?

How could David Siegel, billionaire owner of the largest time share company in the world, Westgate Resorts not have back up savings when trouble hit? Bloomberg BusinessWeek recently chronicled his downfall and rebound in “Versailles, the Would be Biggest House in America“.

EMERGENCY FUND

Background; What is a Time Share?

As a struggling young married couple living in Southern California, El Carino and I visited many time share presentations. Wooed in by a set of luggage, free meal and a show, or other goodie in exchange for 90 minutes, it was both a source of entertainment and a free meal.

A timeshare is a form of vacation ownership where you buy a week or two vacation in a tony resort in exchange for $25,000.00 plus an annual maintenance fee of up to $700.00 per year. This investment (I use the term investment loosely as it is quite unlikely that you will financially profit from the time share purchase and rarely can you sell your ownership interest for a profit) provides a  small apartment in a resort area. You usually buy the same two weeks with December and prime vacation times costing more than off peak weeks. Most owners’ average annual income is about $75,000.00 and they finance their timeshare purchase at up to 15% annual interest. Time share sales teams go after the relaxed vacationers for these impulse purchases.  In sum, the sales tactics are powerful and the owner profit’s outstanding.

Why Even Billionaires Need an Emergency Fund

Business was continuing as usual with expansion funded by the profitable business model. Meanwhile, after the timeshares are sold, the property developer bundles the mortgages’ together, securitizes them and sells the new investment products to investment bankers to market to the public. Things were going along great-until they weren’t. In 2008, Siegel couldn’t sell a $300 million securitization and pay off the primary lenders, his credit dried up, and he was in the midst of a huge Las Vegas building project. His funding gravy train dried up in the midst of the sub-prime lending crisis and mortgage meltdown.

What’s a billionaire to do?

He could not pay back the lenders from the initial mortgages since he was depending upon the funds from the securitization for the capital. And there were no buyers for the securitized products. The initial lenders were not happy and Siegel was on the hook for $1.2 billion, with no savings.

His creditors took swift action requesting he sell a dude ranch, mobile home park, and a Ramada Hotel near Disney World. His creditors put he and his wife on an allowance leading to a drastic lifestyle adjustment.

Lessons from a Billionaire Without Savings

Not only are there wealthy folks without savings, there are high income earners plagued with debt and a negative net worth. Without getting into the psychological reasons for this, what does this mean for those of us without a $1,000,000,000.00 net worth?

Add Siegel’s losses to those of lottery winners who blow it all combined with millionaires in bankruptcy court and the examples of financial mismanagement are not hard to come by. What can you learn from their mistakes? Hint; the lesson is not to give up because if the wealthy can’t manage their money, what hope is there for you!

No Matter What Your Income Level is; You Need to Save

Everyone needs some cash to fall back on when hard times hit. And financial setbacks happen to everyone. Not only are the poor susceptible to financial problems, but high income earners who overspend and don’t save can run into financial problems as well. There is research that substantiates the importance of having emergency funds to fall back on.

Siegel sold some assets, scaled back on spending, and continues to pay his debt. He’s on a path to become financially stable again. Yet his story highlights the importance of living within your means and saving for the eventual financial surprise.

Action Steps

Get a notebook and label it: “(your name) Personal Finance” and keep it by the computer. Use it for all of your personal finance thoughts, activities, and plans.

Building an emergency fund must be done now. Don’t worry about the amount, just funnel a percent of each paycheck into a separate savings account designated for emergencies. Vow not to touch this money unless there is a financial emergency. No, I don’t mean buying a new electronic gadget or pair of shoes!

Each paycheck, transfer manually or by automatic deposit money into your Emergency Savings Account. No excuses. If you don’t see the cash, you won’t miss it.

Do it now!

What Others are Saying

Starting an Emergency Fund with the Right Amount of Money at Yes I am Cheap

How and Why to Start an Emergency Fund at Get Rich Slowly

Figuring the Size of Your Emergency Fund at Wise Bread

21 Strategies for Creating an Emergency Fund at Zen Habits

$1000 emergency fund? 6 months expenses? 1 year salary? Throw them all out the window! at Wealth Informatics

What tips do you have for building an emergency fund? Have you dipped into yours recently?

image credit; google images- gobankingrates.com

HOW TO BOOST YOUR CREDIT SCORE

Life was a lot simpler when what we honored was father and mother rather than all major credit cards.
Robert Orben

Bad things happen when your credit goes down the toilet. Even if you think you don’t need a good credit score because you aren’t going to buy a house, consider this; landlords and employers check your credit score as well. With a lower credit score you could miss out on a great apartment or a good rate on a loan. Check out these myths and tips to boost your credit score and gain some useful personal finance information.

CREDIT CARD TIPS

Myth Number 1: It’s best to have no credit cards at all.

Having several credit cards is helpful in maintaining a solid score. After all, a lender wants to know that you can handle credit responsibly. Here’s the catch, have a few cards, pay them off in full every month, and don’t use more than 20-30% of your available credit.

Myth Number 2: Wealthier people have better credit scores.

Income has nothing to do with credit scores. If you are wealthy and don’t pay your bills on time, your credit score will suffer. Just because you have a big salary doesn’t mean you know how to handle your income or your bills. If you don’t pay your bills on time, you hurt your credit score.

Myth Number 3: You will have a poor credit score if you don’t have a credit history.

Starting out you will probably have a credit score in the 600′s, according to the founder of Credit Karma, Ken Lin (from an article by Mary Cornatzer of McClatchy Newspapers). He recommended those without a credit history (or a poor one) get a secured credit card, requiring a cash deposit. Use the card responsibly and pay the bills on time. Your score will rise along with the improved credit usage.

Myth Number 4: You must be in debt to have a good credit score.

On the contrary, those with credit scores above 800 have less debt than those with scores in the 600 to 700 range.

EASY TIPS TO BOOST YOUR CREDIT SCORE

• Have several credit cards, but don’t use more than 30% of the available credit on any one card.
• Pay your bills in full and on time every month.
• If you are drowning in debt, make a commitment now to get it paid off. Your credit score will increase as will your peace of mind.

Can’t Get Enough?

Read a bit more about Credit Karma at Bargaineering

Wise Bread has some great articles about improving your credit score

Free From Broke tells how An Excellent Credit Score Saved Him Money

Learn from PT Money where to get a Free Credit Report

 Action Steps

Get a notebook and label it: “(your name) Personal Finance” and keep it by the computer. Use it for all of your personal finance thoughts, activities, and plans.

Make today the day you look up your credit score; it’s free and this government website can tell you how to get a free credit report.

If your credit score is not where you want it to be, make a goal and take action towards a better score.

What are your tips for an improved credit score?

IMAGE CREDIT; 401K

Quick Money Tips to Increase Your Wealth in Time and Money

& Links

Small and steady steps lead to great success. Today, get some inspiration to make those small life changes to boost your overall well being and happiness. Implement these ideas in small bits for lasting success.

In reading Money Magazine’s, Get Happy in 2012, I was intrigued by the research based money tips to improve well being. The following suggestions are shamelessly borrowed from that article.

I found it incredible that in a survey of 28,000 Americans, from the University of Georgia, having an emergency fund is the greatest predictor of financial satisfaction. I wasn’t surprised that having a rainy day fund was important, I’ve been stressing that for eons. But, that is was the largest predictor of financial satisfaction, even greater than paying off credit cards or owning a home was a surprise.

For financial satisfaction, make saving for that emergency fund PRIORITY NUMBER ONE.

It’s not news that having credit card debt causes stress. But here’s an easier way to eliminate it according to State College, Pa. financial planner Jeff McClarren. Choose a monthly amount to pay off (make sure it is much bigger than the minimum payment) and focus only on that amount! Worry less about the total amount of the debt, which can be overwhelming and scary and keep paying that monthly amount and the debt will decline before you know it. Of course, do not charge anything else. Apparently, it’s overwhelming to look at the aggregate amount of debt. You can handle tackling that payment every month.

Frequent little splurges, yield greater happiness than infrequent big indulgences. The result, more happiness at less cost. So get that special bottle of nail polish, spring for a CD or DVD at the used media store, or indulge in a gourmet box of cookies. You’ll feel rewarded and satisfied, on a budget.

Next, check out what I’ve been reading. Lots of money and happiness articles .

BARB RECOMMENDS

Time Magazine reported about happiness and money in a study which found that you need to earn $75,000.00 per year to be happy. I don’t claim to know whether this is true or not, but if you need a benchmark to shoot for, here it is. Read about what others have to say on this money and happiness topic.

Arthur Brooks from The American Magazine also asks, Can Money Buy Happiness? The response is no, but success can! So here’s another take, become successful and increase happiness, of course I bet money will also follow.

Ben Edwards writes, 5 Reasons Money Can Buy Happiness for Wise Bread.

Can Money Buy Happiness? Yes it Can, according to Suba at Wealthinformatics. What are your thoughts?

Happiness and Money; How Much Money do You Really Need? asks KNS Financial? Are you one of those folk who reaches one financial level and then raises the bar? Well what do you think is the limit?

Money and Happiness; What Say You? at the Millionaire Nurse Blog. More thoughts on this age old question.

PT Money says You Need to be Happy to build wealth. I’m not so sure. What about you?

Krantcents asks, Will Money Make Me Happy? Certainly having no money will not make one happy.

Narrow Bridge want to know If Money will Make You Happy? There certainly is a lot of discussion on this topic.

Money Reasons has a new solution to happiness: Multitasking and Making My Family Happy.

5 Reasons Money Can Buy Happiness at the humorous Cracked.com.

Jeff Rose’s guest article on Smart Passive Income is a must read for anyone with a dream! He maps out how his persistence led to both blogging and personal business success.

Barbara Friedberg Across the Blogosphere

Take some time to visit these excellent sites which recently featured my work.

The Yakezi.com; Featured article, Patience and Persistence-The Path to Unlimited Success

FindtheBest; TD Ameritrade Research Tools

Len Penzo Black Coffee

Totally Money Blog Carnival at Mother Miser

Carnival of Personal Finance-Ask the Right Questions at Wealth Pilgrim

Tax Carnival #95 at Don’t Mess with Taxes

The Frugal Toad Weekly Round up-Playoff Edition

Carnival of Financial Planning at Credit Cards Canada

Do you think money can buy happiness?

image credit; Princ Arora

You must subscribe to my WEALTH TIPS newsletter on the right. You get invaluable wealth building information and a FREE e-copy of my award winning 20 Minute Guide to Investing. Do not hesitate!

It’s All About the Interest Rate

When shopping for a mortgage, it’s all about the interest rate. The interest rate, also called the annual percentage rate or APR, is essentially the cost you assume for paying back the mortgage over a period of time rather than all at once. Your credit score will heavily influence the mortgage rate you qualify for – lower credit score means, higher interest rate, and higher

BUY A HOME

monthly payment. When you realize how much money you can save over the mortgage life by improving your credit score, you’ll want to wait to purchase your home until you can qualify for a lower rate.

Best vs. Worst Interest Rate Examples

The difference between APRs with a good and bad credit score can be as much as 1.5%, possibly more depending on the lender. The difference is significant for monthly payments and total interest paid. For example, on a 30-year fixed rate $200,000 mortgage loan, a person with a 630 credit score qualify for a higher 5.19% interest rate. The monthly payment would be $1,097 and the borrower would pay a total of $194,915 in interest on the loan.

Now, consider a person with an excellent credit score of 770. This person would typically qualify for the lowest interest rate, which is around 3.6% these days. On a $200,000 mortgage, the monthly payment would be $909 and total interest paid over 30 years would be $127,385.

The bottom line, you’ll spend almost $100 more on your monthly mortgage payment if you have the lowest credit score. But the real shock is the $67,530 more you spend over the life of the mortgage. That’s enough money remodel the home, pay for a child or grandchild’s college, or put toward retirement.

The Difference Just 50 Points Makes

The first two examples are the extremes – the lowest and highest credit score/mortgage scenarios. If your credit score is at the lowest range, it might take several years to bring it all the way up to excellent. Raising your credit score just a little bit can still produce significant savings. For example, a borrower with a mediocre credit score, around 680, might get a 4% interest rate, pay $955 monthly, and spend a total of $143,739 in interest.

With just a 50-point increase in your credit score, you could shave $46 off your monthly mortgage payment and $51,176 off the total interest you pay over the life of the mortgage.

With higher mortgage amounts, the interest rate differences become more significant and saving money is more imperative. On a $250,000 mortgage, there’s a $234 difference in the monthly payment and a $84,413 different in the amount paid over the life of the mortgage.

The numbers in this scenarios were generated from my FICO.com’s Loan Savings Calculator. You can use the calculator yourself to see how much money you could save on a mortgage of a different amount.

Before shopping for a mortgage, check your credit score to see where you stand. If your credit score is in the low range, spend a few months repairing your credit and focusing on your credit score. The money savings will be well worth delaying your home purchase.

J.D. Roberts is a seasoned writer in personal finance, specializing in credit repair. You can find more of his articles at CreditRepair.org.

image credit; inspiration gallery

What steps have you taken to improve your credit score?

Sign up on right to get free WEALTH TIP’s Newsletter, and FREE bonus eBook; 20 Minute Guide to Investing!

Information sourced from Genworth Financial

Folks today are presented with the best interest rate environment in over 50 years. That’s right, you can get a home loan for as little as 4%. Compare that with the late 1970′s when mortgage rates were upwards of 12%. With those historically low mortgage rates, shouldn’t everyone buy a home? Maybe…..

Or maybe not……There is another side to the purchasing decision; the home price. It doesn’t matter if the interest rate is 2%, if you have no down payment and can’t afford the monthly house note, then buying a home is a bad idea. A home purchase is only a good idea if you meet basic criteria.

What’s a potential home buyer to do?

Home Buyers Checklist

Consider buying a home if you meet these criteria:

Expect to live in the home for 5 or more years. We made the mistake of buying a home, and moving two years later. That was an expensive $25,000.00 lesson .

Saved a reasonable down payment. I recommend 20%, buy I understand that is no easy feat. The buyers of our home last Spring had an FHA loan with a very small down payment. Fortunately, they had steady and well paying jobs which could easily cover their mortgage payment.

BUY A SMALL HOME

Less than 28% total debt payments including the mortgage payment. Calculate by adding up all monthly debt payments and divide by your monthly gross (or net if possible) income.

Steady employment which is likely to continue.

An emergency fund of 3+ months of living expenses on top of the down payment.

Motivation and resources to fix the leaks, replace the worn out dishwasher, and keep the property well maintained. Some folks aren’t cut out for home ownership and would rather call the landlord when the toilet gets backed up.

The Takeaway

It’s only a good idea to buy a home if you are financially and emotionally ready to tackle all that goes along with being a homeowner. My grandparents always lived in apartments and on the bus lines. No home ownership and access to public transportation. In some ways, it makes life simpler.

Housing for many living on the coasts is simple financially out of reach. International mortgage trends are a bit different than those in the USA. In fact, in some countries, you must pay cash in order to purchase a home. In others, you may only lease the land for a limited period of time.

If you decide to take the plunge and buy, be smarter and safer with mortgage insurance. Make a detailed budget, including a replacement fund for those unexpected repairs, before deciding to purchase. Look thoroughly, negotiate hard, and make sure to have your future home inspected before you commit.

We just moved across country and bought a beautiful condominium (short sale) in an area which would have been out of our reach a few years ago. As with most of our prior homes, we purchased a home for an amount less than we could afford. And we hope to be here a long time.

Are you considering buying a home or condo next year?

 image credit; audiovisualphoto

How to Live Well if You Work in a Low Paying Field

Sign up on right to get free WEALTH TIP’s Newsletter, and FREE bonus eBook; 20 Minute Guide to Investing!

In Part 1,  I responded to a reader who wondered Why I Freelance for pay well below my normal hourly rate of pay. I talked about a variety of satisfactions I get from educating others about personal finance and wealthy living.

In Part 3; How You Turned Your Passion Into Cash, others share success stories and welcome your input as well.

This question got me thinking about the millions of folks out there who are passionate about doing work that does not pay well. These fields include acting, music, the arts, social work, community service, non profit work, lower pay administrative work, service jobs, restaurant work, retail sales, and many other jobs. In fact, there are probably more lower paying jobs than those that pay well.

Pay level satisfaction is impacted by your own perceptions. Many newly employed college grads, are thrilled to have a job at any pay grade!

I am certainly not imposing my personal values on whether your job is ”well or poorly” paid. I’m offering suggestions to live wealthy, regardless of income.

You may be in a lower paying job, either by choice or by default. Here are some ideas about how to live well and build some wealth in spite of your pay grade.

Adjust your expectations; Forget how anyone else lives. I’ve been fortunate to travel the world. In most countries even the wealthy live in what we in North America would consider small apartments. No matter the size of your family, you do not need a large home. Scale back, live in a smaller home or apartment than you thought was comfortable. Add a roommate or two. You may be surprised at how little you really need. Want some privacy? Go to the library or for a walk.

Take public transportation; Although El Carino and I both have (old) cars, I take the train or walk whenever possible. Jennifer from Little House in the Valley rides miles on her bike.

Use your tax dollars; You pay for parks, libraries, free community art and theatre programs with your tax dollars. Get that money back by using those resources for your entertainment and enjoyment. There are tons of “free” events in most major cities, especially around the holidays.

Eat well and cheaply; Stick to a simple diet. Consider some vegetarian dishes spiced up to make flavorful and delicious. I love a meal of beans and rice. Make a big batch and freeze some for later. Buy in season fruits and vegetables. Go light on meat and prepackaged processed foods. You’ll be thinner and healthier as well.

Spend mindfully; Make it difficult to overspend, don’t spend your leisure time at the mall near temptation. Think before you spend and plan your shopping trips.

Save something, no matter the amount; Get in the habit of saving. Have a small amount transferred from each paycheck into a savings account.

Get out of debt; However you do it, you cannot live on less with debt! For debt help, read these recommendations from top personal finance bloggers; Consumerism Commentary, NoDebtMBA, Debt Sucks Blog, Debt Free by Thirty, Fat Guy; Skinny Wallet, and Money Help for Christians.

Enjoy what you have!

Make sure to read Part 1: Why I Freelance; How to Live Well When your Passion Doesn’t Pay Well.

And Part 3; How You Turned Your Passion Into Cash; be sure to chime in with your story.

image credit: Cuba Gallery

I Need Money

I’ve never tackled this subject, but I realize sometimes there are certain circumstances when you need a loan.

• You want to take a course which will make you more employable.
• You need a small business loan to tide you over for a few years.
• You’re committed to paying off all of your debt, want to consolidate it, and make one payment per month.
• You need to make a home repair, and the banks aren’t lending.
• You got yourself into a short term  jam and don’t want to add to your credit card debt.
• You got hit with some unexpected medical expenses.
• You owe the IRS and want to spread out the payments a bit longer.
• Or, you have an important personal need.

In today’s tight money environment, when banks are slow to lend, you might consider borrowing with peer to peer social lending. It’s a relatively new concept where you borrow from regular folks instead of a bank. The lenders benefit because they are helping you and they get the interest from the loan. The borrowers benefit because they are able to borrow the funds they need without a bank middleman.

What is the Process to Get a Loan?

Now, this does not mean you just show up and get the cash.
A borrower must have at least a 640 credit score, and the better the score, the lower the interest rate. To get started a borrower completes an online form. Next, the basic information is verified to make sure the applicant meets certain minimum qualifications. As part of the process a borrower must write a statement describing his or her financial need. In fact, since regular folks contribute to your loan, the more specific and well written your description the more lenders will be interested in funding your loan. And after you are approved, your listing goes on line and lenders elect to contribute to your loan. You can even have friends and family contribute.

If you have really good credit, you could get an interest rate for as low as 6.59%, although realistically, most of the rates are higher. Actually, the interest rates can go as high as 30% for someone with very poor credit. But as with any loan, the better your credit score, the lower your interest rate.

Where to Learn More About Peer to Peer Social Lending?

Click on the ”NEED MONEY” picture to get to the Prosper website. Next, checkout their blog, other folks’ loan listings, and get all the information you need. To apply for a loan, just click on the BORROW tab on top. I have decided to try out this concept by lending through Prosper. I’ll be writing about my experiences as a lender in the future.

Here’s another option if you are in need of a fast loan. Learn more about loan terms and payment planning at http://www.loans-advisor.com/.

And, in the meantime, please check out my favorite debt blog, The Debt Myth for really helpful advice.

Have you ever been in a real financial jam? How did you get out of it?

Sign up on right to get free WEALTH TIP’s Newsletter, and FREE bonus eBook; 20 Minute Guide to Investing!

And don’t forget to pick up my RSS feed or email subscription and follow me on twitter so you get the word immediately. 

A method to grow your blog readership is to visit other blogs and comment on their articles. The theory behind that strategy, as I learned from the Problogger 31 Days to a Better Blog is that the more recognizable you are on line the more likely others will want to visit your site and read what you have to say. Krantcents has taken this strategy to the highest level and consequently is growing his readership quite substantially.

As I was visiting some of my favorite sites, Yes I am Cheap, My Multiple Incomes,  Budgets are Sexy, and Len Penzo dot com, I found a theme. Now, this theme is not new to me, but it got me thinking. There are a group of bloggers who choose to share their net worth, debt, and spending figures.

HERE’S MY SECRET; As a natural voyeur, I find this information fascinating. I am both amazed and curious about those who share this most sensitive data, and I can’t stop reading it! On top of that, I can’t help but compare my metrics to theirs. Sometimes I come out on top and other times, not so much.

My realization was that there are advantages and disadvantages of both sharing your personal financial information on line and reading about others who disclose this sensitive information.

Advantages

For the ones who put their information out there, I’ve heard it is motivating and serves to hold them accountable. That’s what Flexo of Consumerism Commentary shared with me during my Personal Finance Luminaries interview with him. For the bloggers sharing their earnings on line, it is a source of pride that readers enjoy their articles and advertisers support them.

For the readers of these financial disclosures, we get to peek inside others’ bank and debit accounts. This fulfills the prurient curiosity in us.

Disadvantages

With such transparency on line, there is always a possibility that some evil hacker will get access to someone’s identity or financial data and use it for themselves. If you use your own identity and share this personal information, it may be a bit uncomfortable when your boss, friends, and family have all of your financial statistics.

As a reader, you might feel badly if your net worth or blog earnings don’t measure up to those of another. After all, we all tend to compare ourselves a bit with others. This comparison might also cause you to neglect some responsibilities and devote more time and effort to blogging than is appropriate for your situation.

The Takeaway

In blogging as in life, watch out for the tendancy to compare yourself with others. You create uneccessary stress by worrying about the decisions and actions of those around you. Be mindful of your own goals and objectives and don’t be swayed either positively or negatively by what you read about others’ endeavors. After all, the only one keeping score is you!

What’s your secret take on this topic? Are you a financial voyeur? Or, what leads you to share your personal data?

image credit; photoshoparam Dan

For a quick overview of Investing Strategies and access to WEALTH TIP’s newsletter, pick up my FREE eBook; 20 Minute Guide to Investing (top right of the page). If you like what you’re reading, sign up for my RSS feed or email subscription and follow me on twitter so you get the word immediately.

We just moved across the country, purchased a short sale condominium, and took out a new mortgage. Our credit is stellar, yet because the property we were buying was a short sale, and we wanted to close the loan before my husband began his new job, the mortgage company made it quite difficult to get the loan. After many trials and tribulations, we did get the loan, a 30 year fixed loan at an interest rate of 4.75%.

Historically, 4.75% percent is quite a low interest rate. In spite of published rates below 4.75%, I’m content with the rate we received and am equally pleased to be on the other side of the entire headache of getting financing for and purchasing a short sale property.

What to do to get the best interest rate available for your loan.

• Know your credit score.
• Pay your bills on time.
• Use some of your credit limit, but not all.
• Keep credit inquiries to a minimum. Frequent inquiries lower your score.
• Use an e mortgage calculator to compare rates.

Save as much as you can for your downpayment. A larger downpayment combined with a lower mortgage rate, will keep your housing costs affordable.

Have I missed any tips to get a low mortgage rate?

written on behalf of  e mortgage calculator

image credit; Rev Dan Catt